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To: zbyslaw owczarczyk who wrote (10773)	4/13/1999 3:01:00 PM
From: pat mudge	Respond to of 18016

Ericsson acquisitions: >>> April 13, 1999 Ericsson Seen Needing More Data Networking Purchases By ROD STONE Dow Jones Newswires STOCKHOLM -- Swedish telecoms giant Telefon AB LM Ericsson (ERICY) needs to stick to the acquisition path to raise its global profile in data networking, analysts said. ter earlier Tuesday Ericsson paid just under $500 million for two U.S. companies specializing in data networking using internet protocols. Analyst welcomed the deals and the shares reacted positively to the deals which are considered important for Ericsson's ambitions on both sides of the Atlantic. Ericsson's benchmark B shares closed up 2.6%, or SEK5.5, at SEK215. Ericsson said it is buying Maryland-based Torrent Networking Technologies Corp. for $450 million in cash and California's TouchWave Inc. for $46 million. Torrent supplies high-capacity routers able to deliver internet-protocol, or IP, based data services. TouchWave provides IP-based network platforms able to handle voice over IP and wireless terminals and third party software applications for office use. "I think it's a small step in the right direction...It's part of a strategy of acquiring small to medium sized companies," said Rikard Johansson, telecoms analyst with Matteus Brokerage in Stockholm. "It will help evolve Ericsson into an integrated telecoms and data communications company," said Johansson. He said Ericsson appears unwilling to buy market share in data networking by making a substantial acquisition. "It's a very important move but a bit late maybe," said analyst Jan Vaerding with Carnegie Brokerage in the Swedish capital. "Ericsson needs some more complementary acquisitions in multi-protocol switching," said Vaerding. Aside from internet-protocol based telephony, he said it needs to strengthen its position in general data networking, an area analysts reckon Ericsson has lagged its U.S. rivals. Ericsson's President and Chief Executive Sven Christer Nilsson told a conference call that Ericsson won't however exclude a substantial acquisition if it fitted the company's strategy. "When we find what we need, we have to consider that, big or small," he said. Ericsson's past strategy has been to acquire small and midsize companies. When asked if that strategy has changed, Nilsson said, "Markets are changing, and the environment is changing, so why couldn't we also be changing?" Deals Slightly Negative On EPS In 99, Then Positive Nilsson said during the conference call that the deals will have a "significant" positive impact on earnings from 2000. He gave no specific estimates. An Ericsson official added the deals will have a slightly negative impact on earnings per share in 1999 but will be positive by the following year. "The acquisition moves Ericsson squarely into the IP playing field and will have a substantial impact on our ability to provide a complete data networking solution," Nilsson said in a separate statement. "This is in line with our strategy to offer fully integrated capabilities for converged wireless and wireline voice and data networks." With the U.S. market dominated by the likes of Cisco and Lucent, Vaerding said the acquisitions will be important for its European ambitions. "Ericsson will be one of the leading data communications companies in Europe," he said. >>>>

To: zbyslaw owczarczyk who wrote (10773)	4/13/1999 3:05:00 PM
From: pat mudge	Respond to of 18016

This involves GlobalOne: <<< April 13, 1999 Dow Jones Newswires Teleglobe, Bell Nexxia Get 3-Yr, C$40M Cdn Govt Pact Dow Jones Newswires OTTAWA -- Bell Nexxia Inc. and Teleglobe Communication Services Inc. said they have received a three-year contract worth more than C$40 million from the Canadian Department of Foreign Affairs and International Trade to implement a global telecommunications network. s release, the companies said the network will enable the department to link its 144 Canadian diplomatic missions in 92 countries. They said the contract will be carried out in association with France Telecom (F.FTL) and American TeleSource International Inc. (AMTI). They said the new infrastructure will allow the department to provide its diplomatic missions with a full range of integrated voice and data services. Each of the carriers involved will provide services on specific regions of the network. The companies said Bell Nexxia will provide connection in Canada and will also act as end-to-end integrator of the global communications solution. They said Teleglobe Communication will be responsible for connection to South America, Asia, Oceania, the U.S. and the link to Europe. They noted France Telecom, using Global One services, will be responsible for links in Europe and the Middle East. The companies said the connection to Central America will be handled by American TeleSource. They said the contract also incluces a "one-stop shopping" project-management concept provided by Bell Nexxia for implementation, upgrades, service levels and billing for the entire international network. Bell Nexxia is a unit of Bell Canada, which is a subsidiary of BCE Inc. (BCE), Canada's largest telecommunications company. Teleglobe Communication Services is a subsidiary of Teleglobe Inc. (TGO), which provides overseas telecommunications services. France Telecom, Paris, is a telecommunications company. American TeleSource, San Antonio, provides telecommunications services between the U.S. and Latin America. >>>>